Specifics of Project Management on Industrial Innovation

Abstract

The paper offers a scientific and methodological approach to assessing the efficiency of innovative projects which develops and supplements the theoretical bases of innovative projects analysis through the accounting of recursive dependence of investments on such factors of innovative process as (1) the constructive complexity of the product, (2) the number of stages of the innovative process and (3) the innovative capacity of the enterprise. It is also proposed to enter an adjustment factor (multiplier) to reflect the causal connection between the net present value of innovative projects and the abovementioned factors of innovative process and to improve the accuracy of calculation of cash flows under the project linking the assessments with the certain stages of the project and the corporate capacity. This will reduce the overall integral risk of project implementation for potential investors. The author's concept and the system of models for planning the production and innovations allow revealing quantitative correlation between investments, innovations, and sources of financing and can be used for a reasoned strategic decision making by enterprises implementing innovative development model.

Keywords

• innovations
• modelling
• strategy
• multiplier
• funding of innovative processes
• net present value adjustment